Stock brokerage firm Charles Schwab has inked an agreement to purchase the technology and intellectual property of California-based broker-dealer Motif.
Under the agreement, Charles Schwab will take over Motif’s algorithms, patents and source code.
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Financial details on the deal were not divulged, other than the fact that the deal was an all-cash transaction.
The deal excludes Motif’s broker-dealer, RIA, client accounts as well as client assets.
Bulk of Motif’s development and investment staff will move to Charles Schwab upon deal completion in mid-2020.
This includes Motif founder and CEO Hardeep Walia.
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By GlobalDataSchwab EVP and chief digital officer Neesha Hathi said: “We continue to see an increasing number of clients interested in customising their investing experience to suit their values, objectives and personal circumstances.
“We intend to leverage Motif’s platform to build on Schwab’s existing capabilities and help accelerate our development of thematic and direct indexing solutions for Schwab’s retail investors and RIA clients – all with the sophisticated digital experience our clients expect from Schwab.”
Motif focuses on thematic investment strategies and also enables real-time fractional share trading.
The firm recently agreed to divest its client accounts to Folio Investments.
Earlier this year, Charles Schwab announced the acquisition of Wasmer, Schroeder & Company, a Florida-based fixed income manager focusing on separately managed accounts.
The deal will bring $10.5bn in assets to Charles Schwab.
